It’s official: Hyperliquid has chosen Native Markets as the issuer of its stablecoin USDH. As reported by Cointelegraph, after the community vote, controlled tests on USDH operations with initial limits have started. In parallel, the deployment of the ERC-20 token on Ethereum is being prepared. The decision has sparked a debate on the transparency of the voting process.
During our editorial analyses, we monitored on‑chain conversations and comments from liquidity provisioning operators to assess the immediate impact on order books. Industry analysts we consulted indicate that the initial phase will be characterized by contained and controlled liquidity, designed to limit risk during testing. According to publicly available data and reports from market makers, the operational limit indicated for the test is $800 per transaction, with restricted access via whitelist.
Summary
From the “auction war” to the outcome: how Native Markets became the issuer of the stablecoin USDH
After a prolonged contest that estimated probabilities above 99% for the victory of Native Markets – the community chose the latter for the ticker USDH. In this context, the withdrawal of Ethena, reported by Cointelegraph, further paved the way for Native Markets. That said, the official results of the vote have not been disclosed in detail at the time of updating this article.
Operational Impact: What Changes with the Assignment of the Ticker
With the allocation, Native Markets will be able to propose and issue USDH on Hyperliquid, simultaneously initiating the rollout of the related ERC-20 token to facilitate integrations on Ethereum and the opening of dedicated spot markets. In practice, this paves the way for trading pairs like USDH/USDC and a broader exchange infrastructure, in line with the guidelines expressed by Decrypt.
Reactions and Controversies: Voting Transparency Under the Spotlight
The selection procedure has raised doubts about the transparency of the process. Haseeb Qureshi, from Dragonfly, commented on X describing the process as “not rigorous” and suggesting possible behind-the-scenes influences.
While Mert Mumtaz of Helius noted that stablecoins risk being perceived as interchangeable, with the same generic “USD” appearing on exchanges. Yet, criticisms converge on the need for greater clarity on governance and allocation criteria, as highlighted by various industry operators.
Technical Details: HIP, ERC‑20 and Controlled Testing
Native Markets will present a Hyperliquid Improvement Proposal (HIP) dedicated to USDH and proceed with the implementation of the ERC-20 token for circulation on Ethereum. An initial testing phase is planned to verify the liquidity, security, and proper functioning of the minting and redeem processes.
Implementation and Testing Phase
- Publication of the HIP and deployment of the ERC‑20: the timelines are close, with a progressive rollout.
- Mint/redeem test: the initial phase will allow transactions up to $800 per operation, limited to a selected group.
- Gradual market opening: the activation of the spot book USDH/USDC will proceed, with subsequent removal of the mint/redeem limits upon completion of stability checks.
This test phase will be crucial to confirm the robustness of operations before the full market opening.
Timeline and Next Steps
- September 15, 2025: voting outcome communicated to the community and confirmation of Native Markets as the assignee of the ticker USDH.
- In the coming days: publication of the HIP and deployment of the ERC‑20 in the mainnet environment (timing subject to official confirmation).
- Test phase: initiation of mint/redeem operations with user limits and initial whitelist.
- Progressive go-live: opening of the order book USDH/USDC, expansion of access, and on-chain monitoring.
- Removal of limits: transition to unlimited mint/redeem systems, subject to verification with internal audits and risk parameter checks.
Opening of the USDH/USDC Order Book: Expected Market Effects
The launch of spot trading for the USDH/USDC pair will mark the transition from the experimental phase to the open market. Indeed, the peg will be monitored by observing the spread and price stability in volatility scenarios, with the possibility of arbitrage between chains and exchanges and an initial degree of liquidity that will serve as a confidence indicator for operators.
Governance, permissions, and security: the unresolved issues
- Mint/Burn: the details on who will hold the operational permissions – including roles, multisig, and emergency policy – have not yet been made public.
- Governance: the voting criteria and procedures for potential upgrades are expected to be clarified in the upcoming HIP.
- Audit: security reviews and audits by third parties are planned, but the details have not yet been disclosed.
- Transparency: a request has been made to publish metrics on reserves, mint/redeem flows, and periodic reports to ensure greater clarity.
What to Monitor Now
- Test outcome: the success rate of mint/redeem operations, including limits and settlement times.
- Official documentation: the publication of the HIP, technical specifications, and risk management parameters.
- Markets: the launch and initial liquidity on spot trading USDH/USDC, as well as any peg misalignments.
- Integrations: support from exchanges, wallets, and bridges for ERC‑20, and potential delays in listing inclusion.
- Governance: further clarifications on operational roles, validators, and accountability mechanisms.
Note
- Polymarket: predictive markets have highlighted a probability of over 99% for the victory of Native Markets, especially after the withdrawal of Ethena.
- Public statements: the comments of Haseeb Qureshi (Dragonfly) and Mert Mumtaz (Helius) were shared through their respective social media channels.
- HIP and voting outcomes: further details and official percentages will be made available as soon as the documents are published by Hyperliquid and Native Markets.
